By Robert Wenzel
Last month, President Obama’s administration filed a total of 13 legal briefs against McDonald’s USA, LLC. Within the briefs are 78 alleged occurrences where McDonald’s violated national labor laws by punishing their workers for participating in fast-food related protests.
Approximately 2,500 McDonald’s restaurants are franchised. The franchised locations are operated under a contract with the parent company that free McDonald’s from the responsibility of hiring, firing, or supervising any employees.
The complaints state that the company and the franchise owners retaliated against the workers by either reducing their hours or firing them. Both acts are illegal when an employee is protesting workplace conditions, even if no union organization takes place. The protests were primarily due to the low wages that the restaurant employees earn.
In addition, the complaints also state that McDonald’s may be liable for both back pay that an administrative judge or the National Labor Relations Board may impose as well as for failing to reinstate an employee when required to do so.
The end result of the protests could result in the National Labor Relations Board setting in motion actions that require McDonald’s to negotiate with their franchise owners.
However, labor groups and fast-food employees state that McDonald’s needs to answer for how the franchisees treat their employees because the corporation requires how the franchisee and franchisee employees do their job.
McDonald’s states that they will fight all of the complaints.
The process now is that the cases will have a hearing process. The hearings will be heard at the end of March unless the franchisees and McDonald’s agree to a settlement.
There are many different ways that this could affect employers. If the legal briefs are upheld and are found in favor of the employees at the franchised restaurants, it could mean that the workers would be entitled to return to their jobs or be given back pay. In addition, businesses may be required to pay their employees higher wages, which would have a trickle-down effect in the form of higher prices.
Furthermore, individuals who are looking to open a franchised business could have to pay a higher licensing fee to start their individual company. Even if the person is able to start operations, there is the potential to hire fewer workers to compensate for the higher costs.
There is also the possibility that the franchise owners and large corporations could receive a favorable ruling. If that happens, then the businesses would not be required to pay any back pay or reinstate the workers.